Today’s release of the ‘ACCC’s Dairy Inquiry – Interim Report’ has confirmed what Australian Dairy Farmers (ADF) has long been advocating; there is significant imbalance in market power with farmers having a weak bargaining position.

ADF President Terry Richardson said that this is the very reason why we established the Code of Practice, to bring all of industry together in the one room to have an agreed set of parameters and conditions for processor contracts.

“The ACCC has rightly recognised the bargaining power imbalance between farmers and processors, and processors and retailers,” said Mr Richardson

“We acknowledge the ACCC’s recommendation to implement a mandatory dairy industry Code of Practice, as well as strengthening elements of the current Code. This report is timely and we will incorporate ACCC’s analysis into our already-established review process.

“There was a commitment at the outset that the Code be reviewed after 12 months; the voluntary Code was an important first step in this process of improving the balance of power through the supply chain,” added Mr Richardson.

ACCC Commissioner Mick Keogh acknowledged that there have been some improvements following the introduction of the voluntary code; however, in the ACCC’s view, it is unlikely to fully address the issues that cause detriment to the industry.

The report also analyses the impact of $1 per litre milk, concluding that farmer earnings remain the same regardless of whether milk is sold as private label $1 per litre milk or branded milk.

“Our concern has always been that selling milk as a loss leader at the rear of the supermarket at price points cheaper than water is a strategy that is not in the long-term interest of this industry,” said Mr Richardson.

“Once money departs the supply chain, it is never returned. We have always strongly argued that $1 per litre milk is not sustainable long term.”

A total of eight recommendations are outlined in the report including specific findings about contracting practices and farmgate milk prices.

These interim finding are detailed and comprehensive and we look forward to further consultation with our members in the preparation of a formal response by 31 January 2018.

Media Contact:

David Inall, Chief Executive Officer

M: 0427 495 266

E: dinall@australiandairyfarmers.com.au

Australian Dairy Farmers (ADF) is thrilled to be confirmed as a recipient of the Department of Agriculture and Water Resources Leadership in Agricultural Industries Fund, with over $335,000 going towards the national policy and advocacy body.

The announcement from the Federal Government was made following a comprehensive application from ADF submitted earlier this year.

ADF President Terry Richardson welcomed the grant funding as further recognition of the significant importance of the Australian dairy industry.

“We thank the Department of Agriculture and Water Resources for initiating the fund and Assistant Minister for Agriculture and Water Resources Anne Ruston for the announcement, which acknowledges the importance of strengthening and supporting dairy farmer advocates,” Mr Richardson said.

“A strong dairy industry is vital to the ongoing prosperity of regional communities and the Australian economy; and the receipt of this fund is further evidence of that.”

Mr Richardson said the ADF project is aimed at continuing to develop the leadership skills of the organisation’s leaders to enable strong advocacy on behalf of Australian dairy farmers.

“To meet the ongoing challenges and opportunities our industry is facing, we must have strong leadership across the sector, from our dairy communities right through to the ADF Board,” Mr Richardson said.

“This fund will enable us to develop the current cohort of senior dairy leaders and ensure an adequate supply of skilled leaders into the future.

“It will also allow us to give back to our farmer advocates, many of whom volunteer their time for the benefit of the industry. These committed dairy farmers are rarely recognised or supported in the tireless work they perform for this industry.”

Mr Richardson said ADF looks forward to finalising the agreement and delivering a program which will future-proof and modernise the organisation for the benefit of dairy farmers.

Media Contact:

David Inall, Chief Executive Officer

M: 0427 495 266

E: dinall@australiandairyfarmers.com.au

Australian Dairy Farmers’ Business Members today re-elected Business Directors Simone Jolliffe and Bruce Donnison to the Board, joining them will be new Business Director John Versteden and new Independent Director Ms Victoria Taylor.

Simone has a strong community leadership base having been involved with Young Cattleman’s Union, Holstein Australia and is also a director of DataGene.

Bruce Donnison has been re-elected to the ADF Board having fulfilled a casual vacancy. Bruce has more than 30 years’ experience in the dairy industry from farming through to managing manufacturing and supply chain systems.

New director John Versteden has significant experience in dairying businesses and brings his knowledge in member representation and advocacy through his role as vice president of United Dairyfarmers Victoria (UDV).

Victoria Taylor is the new Independent Director and is former Executive Director of Rice Growers’ Association Australia, and is currently a board member of the Rice Marketing Board (NSW) and the Independent Director of the Safety Institute of Australia.

The two new Board members are exceedingly well qualified for their roles, each bringing a unique perspective to the table.

ADF President, Terry Richardson welcomed the new additions to the Board. “It’s a pleasure to welcome our directors to the Board” Mr Richardson said.

“Their vision and ideas will help ADF in its work to promote the interests and sustainable viability of all Australian dairy farmers.”

Outgoing Board members, Tyran Jones and Dr Dedee Woodside chose to retire at the end of their respective terms and therefore did not seek re-election. ADF President, Terry Richardson spoke highly of both directors and their service to ADF.

“On behalf of ADF I would like to thank Tyran Jones and Dr Dedee Woodside for their tireless contribution to ADF during their terms, and for their strong commitment to dairy,” Mr Richardson said.

“We are a stronger organisation for their involvement.”

The ADF Board is comprised of four farmer directors Terry Richardson, Simone Jolliffe, Bruce Donnison and John Versteden, and one independent director, Ms Victoria Taylor.

Media Contact:

Bernadette Marr, Media and Communications Manager

M: 0447 161 919

E: media@australiandairyfarmers.com.au

Australian Dairy Farmers (ADF) has elected Terry Richardson as the President of the peak policy body providing collective representation for dairy farmers in Australia.

Terry Richardson operates a dairy farm with his family in Deans Marsh, South West Victoria, where he has lived since 2004. The farm has seasonal calving pattern and milks 550 cows.

Terry was appointed as an Australian Dairy Farmers Business Director in November 2015 and assumed the role of Acting President in December 2016.

Terry has held several positions in the dairy industry, in New Zealand and Australia. He was a director of Kiwi Co-operative Dairies for seven years and a dairy consultant with Agriculture New Zealand for seven years. After moving to Australia, he joined his local UDV branch and was later appointed to the South West Regional Extension Committee. He was previously Chair of Warrnambool Cheese and Butter Company and served as a director of the company for nine years. Terry has served on many community boards and committees.

Earlier in the day, at the ADF Annual General Meeting, State Members, Business Members and invited guests heard from CEO, David Inall about the year in review.

“We are pleased with the achievements made this year and we look forward to continuing to deliver on our policy priorities to help deliver a more profitable and sustainable industry in the long-term,” Mr Inall said.

“It has been an honour to discuss Australian Dairy Farmers’ ongoing efforts and to advocate at a national level on your behalf.”

The ADF Board is comprised of four farmer directors Terry Richardson, Simone Jolliffe, Bruce Donnison and John Versteden, and one independent director, Ms Victoria Taylor.

Media Contact:

Bernadette Marr, Media and Communications Manager

M: 0447 161 919

E: media@australiandairyfarmers.com.au

Dairy farmers around the country are today being celebrated for their hard work, dedication and commitment to producing trusted and nutritious products.

The inaugural National Agriculture Day (Ag Day) recognises the remarkable contribution agriculture makes to Australian society and the economy.

Australian Dairy Farmers President, Terry Richardson, said the dairy industry was a key contributor to Australia’s agricultural sector, and a major employer in rural and regional areas.

“Every year Australian dairy farmers produce more than 9 billion litres milk on just under 6000 farms,” Mr Richardson said.

“Our industry employs more than 42,000 people across the supply chain, in both regional and rural centres, and we are the fourth biggest dairy exporter in the world.

“Based on a farmgate value of production of $3.7 billion, it is worth about $13.7 billion across the supply chain.”

Ag Day, an initiative of the National Farmers Federation and the Federal Department of Agriculture and Water Resources, comes on the back of recent research, which found that 83% of Australians would describe their connection with farming as ‘distant’ or ‘non-existent’.

Given its importance to the economy and society, Mr Richardson said it was important to better connect consumers with the sector.

“The Australian agricultural sector is valued at more than $60 billion annually and is the countries’ second largest export industry,” Mr Richardson said.

“We like consumers to have a connection with where their food comes from and how it is produced.

“Australians should be very proud of their dairy industry. We’re world leaders in producing clean, green and nutritious dairy products and our sustainable practices are recognised internationally as some of the best in the world.”

National Ag Day is being celebrated at events and functions across Australia. Get involved at www.agday.org.au.

Media Contact:

Bernadette Marr, Media and Communications Manager

M: 0447 161 919

E: media@australiandairyfarmers.com.au

Australian Dairy Farmers (ADF) acknowledges the release of the Economic References Committees report (Australia’s dairy industry: rebuilding trust and a fair market for farmers) yesterday into the dairy industry as a positive move towards strengthening the entire dairy value chain.

ADF President, Terry Richardson said he recognised the interest of the Senate and their support as an acknowledgement of Parliaments willingness to work on long-term solutions on behalf of dairy farmers.

“We are pleased to see support for the Code of Practice and the work we have been doing with the Australian Dairy Products Federation (ADPF), our state dairy farming members and key industry bodies to establish a fair, long-term solution to improve profitability of Australian dairy farmers”, Mr Richardson said.

“The recommendations of the report will help improve farmers negotiating powers, and will contribute further to ensuring there is fairness and transparency throughout the supply chain”.

“We have been working with industry partners on establishing solutions to a number of issues within the dairy industry for a long time and are pleased we are finally getting the tools needed to increase transparency and fairness”, Mr Richardson said.

“The Effects Test, Unfair Contracts Legislation and Small Business and Family Enterprise Ombudsman, are among the tools we have been advocating for since 2011”.

ADF notes the Committees recommendation to cease development of the Commodity Milk Price Index, while the Coalition Senators support the development of the index.

“The Index is not a magic bullet, but if done right will importantly provide independent and transparent market information to dairy farmers that is easily accessible and useful in making decisions about their businesses”.

“In isolation, tools such as Code of Practice, the Effects Test and the Commodity Milk Price Index will not fix the problems with the dairy industry. However, when combined and used alongside other reforms such as the Small Business and Family Enterprise Ombudsman will ensure fairness along the supply chain”.

“We will continue to advocate for improved transparency regarding the impact of retailer actions on suppliers, and for the regulating bodies to have the power to prevent potentially damaging situations such as retailer predatory pricing in future”, Mr Richardson said.

Mr Richardson also noted the committee’s recommendation for the Government to hold an independent review of the Dairy Services Levy and Dairy Australia.

“While we recognise the need to continuously assess organisational practices, we can confirm that Dairy Australia has recently undertaken a review and put in place mechanisms to ensure dairy farmers are receiving the best value for money from their levy”.

“There is absolutely no doubt that the research and development levy has delivered enormous benefits to all dairy farmers over the past 35 years and Dairy Australia are focused on delivering long- term research, development and extension strategies for the dairy industry”, Mr Richardson said.

ADF acknowledges the ACCC inquiry into the dairy industry and are awaiting the outcomes and measures that can be taken from the inquiry to further reduce the power imbalances between retailers, processors and farmers and help reduce the transfer of risk onto farmers.

As an industry, we want to recognise the efforts of Australian Parliament for their support and willingness to listen to the dairy industry to get the effective solutions in place.

Media Contact:

Bernadette Marr, Media and Communications Manager

M: 0447 161 919

E: media@australiandairyfarmers.com.au

AUSTRALIAN Dairy Farmers (ADF) is concerned about the development of allegations made this past week regarding the misappropriation of water from the Murray-Darling Basin.

Australian Dairy Farmers (ADF) welcomes the announcement of an environmental offset package to close the remaining gap to meet the Basin Plan’s 2750 GL target.

The 2017-18 Federal Budget has both delivered some important priorities to the dairy industry and raised concerns, Australian Dairy Farmers (ADF) said today.

Interim ADF CEO, John McQueen said the Coalition Government has had to find a difficult balance between the need to find savings and the desire to grow the agricultural industry, dairy included.

“While we were prepared for a no-frills budget offering limited spending initiatives, we are pleased the government has delivered on some priorities”, said Mr McQueen.

Relevant budget information for dairy:

• Instant asset write off extended for 12 months – Businesses with a turnover of less than $10 million will be

  eligible for accelerated depreciation arrangements for assets valued at less than $20,000 until 30 June 2018.

• Regional Growth Fund – $272 million over four years for major regional projects to support structural adjustment and $200 million for the Building Better Regions Fund.
• Extended eligibility for Farm Business Concessional Loans Scheme – farmers and their partners who have received their full entitlement for Farm Household Allowance will eligible for loans up to 50 per cent of their debt position for refinancing purposes.
• Gas supply affordability – $86.3 million over four years to improve gas regulation and supply.

Concerns for dairy:

• Visa Fee Changes – Businesses with turnover of less than $10 million will be required to make upfront payments of $1,200 for temporary skill shortage visas (to replace the 457 visa), and $3,000 for employees on permanent work visas. The money will be used towards the Skilling Australians Fund.

ADF is concerned the increase in fees for foreign workers will be detrimental to the dairy industry.

“We believe the fee increase will place an even greater burden on farmers who have had to rely on skilled migration to bolster their workforce due to critical labour shortages in many dairy regions”, said Mr McQueen.

ADF also acknowledges funding for two election commitments with the development of the commodity milk price index and Regional Investment Corporation to streamline the delivery of concessional loans.

ADF will continue lobbying Government to implement policies and programs that will increase confidence and enable the dairy industry to grow through difficult market conditions.

Media Contact:

Bernadette Marr, Media and Communications Manager

M: 0447 161 919

E: media@australiandairyfarmers.com.au

Australian Dairy Farmers (ADF) welcomes today’s announcement by the ACCC in initiating proceedings in the Federal Court against the actions of Murray Goulburn a year ago where they cut the milk price paid to farmers for the year.

The ACCC has stressed the lack of transparency in price notification when considering the actions of Murray Goulburn and is now seeking orders through the Federal Court.

Interim ADF CEO, John McQueen said the issue of price transparency and unfair/unconscionable contract terms and conditions has been a high priority issue for ADF for more than 15 years and it is pleasing that we are seeing some significant recognition that dairy farmers need to be treated much more fairly than they have been in the past.

“Over the past 7 months, ADF in collaboration with processors and farmers have been working to develop a Code of Practice on Contractual Arrangements which is almost ready for signing.

“This Code will go a long way to ensuring the actions taken a year ago will lead to more transparency.

“We are also pleased the ACCC has recognised the nature of the Murray Goulburn Cooperative and has decided against seeking financial penalties which will negatively impact the farmers who were adversely affected in 2016”, said Mr McQueen.

While ADF were surprised that the ACCC is not taking any action against Fonterra, we acknowledge the ACCC is an independent regulator and after applying the law has concluded that they were more transparent in their activities.

Mr McQueen added that ADF also welcomes the ACCC proposed actions, which will provide a strong message to all processors that the independent regulator is serious about addressing breaches of Competition Law.

“We believe the adoption of the Code of Practice on contractual arrangement will bring significant improvements in relationships between farmers and processors”, said Mr McQueen.

Media Contact:

Bernadette Marr, Media and Communications Manager

M: 0447 161 919

E: media@australiandairyfarmers.com.au

Australian Dairy Farmers (ADF) is very pleased to announce the appointment of Mr David Inall as the incoming Chief Executive Officer (CEO) of Australia’s peak dairy farm body.

With a strong background working with industry and government on strategic policy matters, including animal welfare and sustainability, Mr Inall comes into the role after four years as the Senior Vice-President of United Egg Producers based in Atlanta, Georgia, United States.

Mr Inall has a Bachelor in agricultural science from the University of Western Sydney and is a graduate of the Australian Institute of Company Directors.

ADF Interim CEO Mr John McQueen, who took on the role as a short-term replacement, will continue in the position until Mr Inall commences in early July 2017.

Media Contact:

Bernadette Marr, Media and Communications Manager

M: 0447 161 919

E: media@australiandairyfarmers.com.au

Australian Dairy Farmers (ADF) is seeking assurances that there will not be any changes to the Dairy Industry Labour Agreement, under the new visa arrangements announced yesterday.

Interim ADF CEO, John McQueen said access to skilled workers was essential to the continued growth and productivity of the dairy industry, yet there is still a critical shortage of skilled dairy farm workers.

“The dairy industry relies on skilled migration to bolster its workforce and help our farmers with critical labour shortages.”

“Our preference is always to hire Australian workers, but there are not enough experienced workers to meet the demand.”

“Many dairy employers rely on skilled overseas workers to fill core on-farm roles due to the lack of available local labour”, said Mr McQueen.

Under the template agreement finalised with the Department of Immigration and Border Protection on 17 July 2015, dairy farmers can recruit skilled senior farmhands from overseas on 457 visas, as well as farm managers.

The dairy industry has been investing heavily in recruitment, training and retention programs since 2006, and will continue to do – being able to recruit overseas is just another option for farmers to meet demand in the short to medium term.

“We are concerned that instead of addressing farmers worries and streamlining the application process, the Government’s changes could mean more red tape by placing an even greater administrative burden on farmers,” said Mr McQueen.

Mr McQueen said more detail on the Government’s new visa program was required and ADF will be consulting Government on the changes.

Media Contact:

Bernadette Marr, Media and Communications Manager

M: 0447 161 919

E: media@australiandairyfarmers.com.au